Not long ago there were rumors claiming Paris based Capgemini as front runner to buy Headstrong for $500 Million. The talks were said to be in advanced stage with IBM and HP being in the race as well. The news today is that BPO company Genpact has bought Headstrong for $550 Million. Considered to be a leader in the BPO space headquartered out of Gurgaon, India, Genpact was a surprising entrant in the auction.

In an interview post the acquisition news, Genpact CEO and President Pramod Bhasin said this deal brings much needed IT expertise for Genpact's expansion plans into markets like healthcare, banking and leverage Headstrong's onsite presence in the US. Started by HCL co-founder Arjun Malhotra, headstrong generated $217 million revenues in 2010 with Morgan Stanley being one of their largest client.

Speaking to CNBC, Mr. Bhasin explained how the deal will impact Genpact's business for the better:

In capital markets you need the IT, you need the knowledge process, you need the analytics and you need the process and domain expertise because of the nature of the business. You are dealing with trading derivatives, very fast moving stuff. It is a highly changing environment for capital markets and investment banking as we know regulatory compliance and how it changes.

The acquisition is seen by both companies as mutually beneficial, with Genpact hoping to get Headstrong cross sell to clients in Europe, Asia, Australia and US while Headstrong's clients getting better end-to-end solutions from Genpact. How this merger will affect the work force of both companies is yet to be seen.